Open AccessIntra‐Household Allocation of Resources: Inferences from Non‐resident Fathers’ Child Support Payments *
Author(s) -
Ermisch John,
Pronzato Chiara
Publication year - 2008
Publication title -
the economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.683
H-Index - 160
eISSN - 1468-0297
pISSN - 0013-0133
DOI - 10.1111/j.1468-0297.2007.02124.x
Subject(s) - payment , economics , child support , sociology , actuarial science , demographic economics , public economics , political science , law , finance
A large proportion of divorced and separated fathers form new partnerships. The new partner's preferences are not likely to put much weight on expenditures on the man's children from his previous union. Thus, his own and his partner's income would have different impacts on his child support payments if partners’ relative incomes affect bargaining power in household decisions. This article exploits within‐father variation in the British Household Panel Survey (1991–2005) to estimate the impacts of the intra‐household income distribution on child support payments and the father's welfare. We find that a higher share of father's income in household income increases the probability of paying child support and its amount relative to household income.